Exam 14: Managerial Accounting Concepts and Principles

The ________________________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

Explain what is meant by the "lean business model" and why many businesses have adopted it.

Use the following information to compute the cost of goods sold for the period: Beginning raw materials \ 5,500 Ending raw materials 4,000 Direct labor 12,250 Raw material purchases 7,400 Depreciation on factory equipment 6,500 Factory repairs and maintenance 3,300 Beginning finished goods inventory 10,200 Ending finished goods inventory 8,900 Beginning goods in process inventory 5,700 Ending goods in process inventory 6,300

The three major cost components of a manufactured product are:

Use the following information from Hardy Co. for the current year: Direct materials used \ 5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning goods in process 3,000 Ending goods in process 4,000 -The total of Hardy Co.'s manufacturing costs added during the current year is:

Companies A, B, C and D are competitors in the same industry. Recently each received and produced an order for 75,000 units of an identical item. The following times were measured at each company. Company Company Company Company A B C D Process time 10.0 days 9.0 days 8.0 days 7.0 days Inspection time 10.0 days 10.0 days 10.0 days 10.0 days Move time 10.0 days 10.0 days 4.0 days 10.0 days Wait time 10.0 days 8.5 days 3.0 days 8.0 days Which of the following statements is true regarding the manufacturing cycle efficiency of these companies?

M-Bot, Incorporated produces automatic car starters. The company received and produced an order for 10,000 starters last month. Assume that the following times were measured during the production of this order. (a) Compute the company's manufacturing cycle time. (b) Compute the company's manufacturing cycle efficiency.

Cycle efficiency:

The following costs are included in a recent summary of data for a company: advertising expense $85,000; depreciation expense - factory building $133,000; direct labor $250,000; direct material used $300,000; factory utilities $105,000; and sales salaries expense $150,000. Determine the dollar amount of prime costs.

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

The following list indicates costs as they flow through the business as a product is manufactured. Some items are missing. Compute the missing amounts.

Calculate Cost of Goods Sold for the following two companies:

What is cycle time and cycle efficiency? What is the purpose of these measures?

Which one of the following items is normally not a manufacturing cost?

Use the following information to compute the cost of goods manufactured: Beginning finished goods inventory \ 9,250 Beginning goods in process inventory 8,700 Beginning raw materials 7,500 Depreciation on factory equipment 6,000 Direct labor 75,000 Ending finished goods inventory 8,750 Ending goods in process inventory 9,300 Ending raw materials 8,500 Factory Supervisor's salary 50,000 Raw material purchases 14,000

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

If beginning and ending goods in process inventories are $5,000 and $15,000, respectively, and cost of goods manufactured is $170,000, what is the total manufacturing cost for the period?

Costs that are first assigned to inventory are called: